IIBF STORE
JAIIB / CAIIB / IIBF classes by Ashish Jain
WhatsApp JAIIB to +918360944207
https://iibf.store
https://iibf.store
CAIIB · Advanced Bank Management · Module C - Credit Management
One-linersAbm 22c
1
High-risk accounts?
Every 3 months
2
Medium-risk accounts?
Every 6 months
3
Low-risk accounts?
Every 12 months
4
SMA-0?
1 – 30 days
5
SMA-1?
31 – 60 days
6
SMA-2?
61 – 90 days
7
NPA?
> 90 days
8
Standard?
No default / overdue ≤ 90 days
9
Sub-standard?
NPA for ≤ 12 months
10
Doubtful?
NPA for > 12 months (D1: 0-1 yr, D2: 1-3 yr, D3: > 3 yr)
11
Loss?
Identified by bank / auditor / RBI as unrecoverable
12
(True/False) Credit Monitoring is required only until first disbursement of the loan?
FALSE — It begins after disbursement and continues till closure.
13
(True/False) Sale proceeds being routed through the financing bank is one of the simplest indicators of healthy account conduct?
TRUE
14
(True/False) Stock older than 6 months must be valued at market price for DP calculation?
FALSE — Old / non-moving stock is generally excluded from DP altogether.
15
(True/False) Stock & receivables audit is generally conducted by the bank's own branch staff for large accounts?
FALSE — It is conducted by independent empanelled CAs / cost accountants.
16
(True/False) CARO 2020 contains specific clauses on default in loan repayment and end-use of funds, useful for credit monitoring?
TRUE
17
(True/False) Periodic site visits are not required if the loan is fully collateralised?
FALSE — Visits remain mandatory irrespective of collateral.
18
(True/False) The Credit Audit Department reports directly to the Audit Committee of the Board?
TRUE
19
(True/False) Credit Audit and Statutory Audit serve the same purpose?
FALSE — Credit Audit is internal, account-specific, risk-graded; Statutory Audit is external and entity-wide.
20
(True/False) Legal Audit covers verification of title deeds and chain of title for the secured immovable property?
TRUE
21
(True/False) SMA-0 represents 31-60 days overdue?
FALSE — SMA-0 = 1-30 days; SMA-1 = 31-60 days.
22
(True/False) CRILC is the supervisory platform for credit exposures of ₹5 Cr and above?
TRUE
23
(True/False) Once an account becomes NPA, partial repayment is enough to upgrade it to Standard?
FALSE — All overdues — principal + interest — must be cleared.
24
(True/False) The IBC, 2016 minimum default threshold for corporate insolvency is ₹1 lakh?
FALSE — Raised to ₹1 Cr by notification of 24 March 2020.
25
(True/False) Under SARFAESI Sec. 13(2) a 60-day demand notice is mandatory before taking possession of secured assets?
TRUE
26
(True/False) Restructured but Standard accounts attract 0.40 % provisioning under IRACP?
FALSE — They attract 5 %.
27
High-risk accounts?
Every 3 months
28
Medium-risk accounts?
Every 6 months
29
Low-risk accounts?
Every 12 months
30
SMA-0?
1 – 30 days
31
SMA-1?
31 – 60 days
32
SMA-2?
61 – 90 days
33
NPA?
> 90 days
34
Standard?
No default / overdue ≤ 90 days
35
Sub-standard?
NPA for ≤ 12 months
36
Doubtful?
NPA for > 12 months (D1: 0-1 yr, D2: 1-3 yr, D3: > 3 yr)
37
Loss?
Identified by bank / auditor / RBI as unrecoverable
38
(True/False) Credit Monitoring is required only until first disbursement of the loan?
FALSE — It begins after disbursement and continues till closure.
39
(True/False) Sale proceeds being routed through the financing bank is one of the simplest indicators of healthy account conduct?
TRUE
40
(True/False) Stock older than 6 months must be valued at market price for DP calculation?
FALSE — Old / non-moving stock is generally excluded from DP altogether.
41
(True/False) Stock & receivables audit is generally conducted by the bank's own branch staff for large accounts?
FALSE — It is conducted by independent empanelled CAs / cost accountants.
42
(True/False) CARO 2020 contains specific clauses on default in loan repayment and end-use of funds, useful for credit monitoring?
TRUE
43
(True/False) Periodic site visits are not required if the loan is fully collateralised?
FALSE — Visits remain mandatory irrespective of collateral.
44
(True/False) The Credit Audit Department reports directly to the Audit Committee of the Board?
TRUE
45
(True/False) Credit Audit and Statutory Audit serve the same purpose?
FALSE — Credit Audit is internal, account-specific, risk-graded; Statutory Audit is external and entity-wide.
46
(True/False) Legal Audit covers verification of title deeds and chain of title for the secured immovable property?
TRUE
47
(True/False) SMA-0 represents 31-60 days overdue?
FALSE — SMA-0 = 1-30 days; SMA-1 = 31-60 days.
48
(True/False) CRILC is the supervisory platform for credit exposures of ₹5 Cr and above?
TRUE
49
(True/False) Once an account becomes NPA, partial repayment is enough to upgrade it to Standard?
FALSE — All overdues — principal + interest — must be cleared.
50
(True/False) The IBC, 2016 minimum default threshold for corporate insolvency is ₹1 lakh?
FALSE — Raised to ₹1 Cr by notification of 24 March 2020.
51
(True/False) Under SARFAESI Sec. 13(2) a 60-day demand notice is mandatory before taking possession of secured assets?
TRUE
52
(True/False) Restructured but Standard accounts attract 0.40 % provisioning under IRACP?
FALSE — They attract 5 %.